Pizu Group Holdings Limited's (HKG:8053) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Pizu Group Holdings' Annual General Meeting to take place on 20th of September
• Salary of CN¥808.0k is part of CEO Tianyi Ma's total remuneration
• The total compensation is 50% less than the average for the industry
• Pizu Group Holdings' three-year loss to shareholders was 33% while its EPS grew by 3.0% over the past three years

Shareholders may be wondering what CEO Tianyi Ma plans to do to improve the less than great performance at Pizu Group Holdings Limited (HKG:8053) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 20th of September. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Pizu Group Holdings

How Does Total Compensation For Tianyi Ma Compare With Other Companies In The Industry?

Our data indicates that Pizu Group Holdings Limited has a market capitalization of HK$1.3b, and total annual CEO compensation was reported as CN¥824k for the year to March 2024. That's a notable increase of 21% on last year. We note that the salary portion, which stands at CN¥808.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Hong Kong Construction industry with market capitalizations between HK$780m and HK$3.1b, we discovered that the median CEO total compensation of that group was CN¥1.7m. This suggests that Tianyi Ma is paid below the industry median. Furthermore, Tianyi Ma directly owns HK$21m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CN¥808k	CN¥663k	98%
Other	CN¥16k	CN¥16k	2%
Total Compensation	CN¥824k	CN¥679k	100%

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. Pizu Group Holdings has gone down a largely traditional route, paying Tianyi Ma a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Pizu Group Holdings Limited's Growth

Pizu Group Holdings Limited has seen its earnings per share (EPS) increase by 3.0% a year over the past three years. Its revenue is down 8.6% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Pizu Group Holdings Limited Been A Good Investment?

Few Pizu Group Holdings Limited shareholders would feel satisfied with the return of -33% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Tianyi receives almost all of their compensation through a salary. The loss to shareholders over the past three years is certainly concerning. The disappointing performance may have something to do with the flat earnings growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Pizu Group Holdings that you should be aware of before investing.

Important note: Pizu Group Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.